Following the signing of the Central American Free Trade Agreement, the Dominican Republic has been the big loser. In 2003, Central America exported to the DR US$85 million, while DR exports to Central America were only US$15.6 million. Lisandro Macarrulla, president of the Association of Industries of the Dominican Republic, in an interview with Hoy newspaper says the explanation is that Dominican goods are not competitive. He said that while Central American businessmen pay US$0.09 per kilowatt/hour for power, Dominican industries have to pay US$0.18 for the same amount of energy. Likewise, he says that interest rates in Guatemala, for instance, are at most 10%, while in the DR, the rates are at 50%. Cost of borrowing in dollar for Central Americans is 6%, and for Dominicans up to 15%. Furthermore, he explained that Dominican export production is subject to 10% exchange tax, 5% export tax, 2% import taxes, and 3% tax on raw materials, while these taxes do not exist in Central America.
With Guatemala alone, the trade deficit is at US$34.2 million, according to the AIRD president.